US technology giant Amazon has announced plans to invest more than €16 billion ($18 billion) in Germany in 2027, including in data centres and other infrastructure supporting the growth of artificial intelligence.
The investment was announced on Tuesday at a business summit hosted by the German Government in Berlin, offering a boost to Europe’s largest economy as it seeks to attract fresh investment, particularly in high-tech industries.
“Germany is a hub of innovation and one of the most attractive investment opportunities in Europe,” said David Zapolsky, Amazon’s chief global affairs and legal officer.
He noted that the company had invested more than €100 billion in Germany since 2010.
Germany’s Economy Minister, Katherina Reiche, said the investment would “strengthen Germany’s position in international technology competition and create value and jobs in the process”.
Amazon expands AI and cloud infrastructure
Of the planned €16 billion investment, nearly €5 billion will go towards expanding the operations of Amazon Web Services, the company’s cloud computing division, in the Frankfurt area.
The expansion comes amid growing demand for artificial intelligence services and the computing infrastructure needed to support them.
Some of the funding will also go towards Amazon Leo, the company’s initiative to provide high-speed internet through a network of satellites.
Amazon said it would upgrade its warehouses, including through increased use of robotics. Its streaming service, Amazon Prime Video, also plans to film a series of new productions in Germany.
Germany seeks to revive economic growth
The investment comes as the German Government seeks to attract companies willing to expand their operations and help revive an economy facing prolonged stagnation.
Businesses have frequently cited excessive bureaucracy, high energy costs and a shortage of skilled workers as obstacles to investment.
Chancellor Friedrich Merz told the summit that his coalition government had “embarked on the most ambitious reform and modernisation drive of the past decades. We are committed to seeing these reforms through.”
He identified tax relief, reducing bureaucracy and strengthening financial markets as key priorities.
Earlier, Reiche said in a radio interview that companies had pledged investments worth more than €220 billion at the summit.
The event, which concluded on Tuesday, brought together more than 200 business leaders from Germany and other countries.
Merz opened the summit late on Monday with an on-stage discussion with Nvidia Chief Executive Officer Jensen Huang.
Berlin also announced a partnership with Nvidia aimed at accelerating the adoption of artificial intelligence in industrial applications, an area in which Germany hopes to build on its manufacturing strengths.